| NEW YORK, April 4
NEW YORK, April 4 The leveraged loan world
welcomed the first ever actively managed exchange traded fund
(ETF) focused on senior bank loans today.
State Street Corp and the Blackstone Group's
new senior loan ETF began trading today on the NYSE Arca under
the symbol SRLN.
"Given the high turnover of senior loans and the critical
importance of credit selection, we believe an active strategy
provides a key advantage to investors who want access to this
corner of the market," said James Ross, global head of SPDR
Exchange Traded Funds at State Street Global Advisors (SSgA) in
a press statement.
The new ETF is designed to outperform the Markit iBoxx USD
Liquid Leveraged Loan Index and the S&P/LSTA U.S. Leveraged Loan
The two other EFTs focused on senior loans are passively
managed. Invesco PowerShares tracks the S&P/LSTA U.S. Leveraged
Loan 100 Index and Pyxis iBoxx follows the Markit iBoxx USD
Liquid Leveraged Loan Index.
Loan ETFs have been on a tear this year, with the first
mover Invesco PowerShares now housing $3.04 billion in assets
The State Street and Blackstone's SRLN will charge an
expense ratio of 0.90 percent, which is lower than the average
expense ratio of senior loan mutual funds but higher than the
passively-managed loan ETFs in the market.
Pyxis' SNLN has an expense ratio of 0.55 percent while
Invesco's BKLYN charges 0.65 percent management fee, and an 0.11
percent acquired fund fee.
"SSgA is a pioneer in the ETF market and we are pleased to
join them in bringing the first actively managed senior loan ETF
to investors," said Lee Shaiman, managing director, The